Hulu + Live TV to Be Combined with Fubo

Disney is set to combine its Hulu + Live TV business with Fubo, becoming the majority owner of the merged business and settling all litigation between the two companies over the upcoming Venu Sports venture.

The merged entity will operate as Fubo under the existing management team, led by co-founder and CEO David Gandler, with Fubo and Hulu + Live TV remaining available as separate options. The two services have a combined 6.2 million subs in North America. Disney will own 70 percent of Fubo.

“We are thrilled to collaborate with Disney to create a consumer-first streaming company that combines the strengths of the Fubo and Hulu + Live TV brands,” said Gandler. “This combination enables us to deliver on our promise to provide consumers with greater choice and flexibility. Additionally, this agreement allows us to scale effectively, strengthens Fubo’s balance sheet and positions us for positive cash flow. It’s a win for consumers, our shareholders, and the entire streaming industry.”

“This combination will allow both Hulu + Live TV and Fubo to enhance and expand their virtual MVPD offerings and provide consumers with even more choice and flexibility,” said Justin Warbrooke, executive VP and head of corporate development at The Walt Disney Company. “We have confidence in the Fubo management team and their ability to grow the business, delivering high-quality offerings that serve subscribers with the content they want and offering great value.”

As part of the deal, Disney is entering a new carriage deal with Fubo that allows the platform to create a new sports and broadcast service with ABC, ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS and ESPN+. Further, Fubo has settled all litigation with Disney and ESPN related to Venu Sports, the previously announced sports streaming platform planned by ESPN, FOX and Warner Bros. Discovery. Fubo has also settled all litigation with FOX and Warner Bros. Discovery. Disney, FOX and Warner Bros. Discovery will make an aggregate cash payment to Fubo of $220 million. Disney has committed to provide a $145 million term loan to Fubo in 2026 as part of the transaction. A termination fee of $130 million will be payable to Fubo under certain circumstances if the transaction fails to close.